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Algeria Starts Gas Output from Delayed Field

Algeria's Sonatrach began gas production from the much-delayed Timimoun gas field ( Timimoun Basin ) development Saturday, according to state-run APS news agency. Gas production from the field has yet to reach commercial volumes, however, industry sources close to the company said Sunday. A source at Sonatrach told S&P Global Platts that the Timimoun gas field is in its commissioning phase and commercial production has not yet started.

Gas, which will be produced from a total of 37 wells, will be transported to the GR-5 pipeline which connects Reggane to the Hassi R'mel processing hub in central Algeria, before being sent north to be exported via pipeline or LNG from Arzew. Production at the Timimoun gas field, located in Hassi-Barouda in the southwest of the north African state, was originally due to see first gas output in 2013, according to Algeria's 2009 development plan. The field is expected to produce 5 Mcm/d at peak, or the equivalent of 1.8 Bcm/y.

Timimoun is jointly operated by Sonatrach (51%), Total (37.75%) and Spain's Cepsa (11.25%). The field is relatively expensive to develop given the technical challenges of the tight gas reservoir. The Oxford Institute for Energy Studies has estimated that the unit cost of production at about US$4.70/MMBtu.